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Dáil Éireann debate -
Thursday, 11 Dec 1986

Vol. 370 No. 11

Written Answers. - Balance of Trade Figures.

31.

asked the Minister for Finance if he will make a statement on the latest balance of trade figures.

The latest external trade data available relate to October 1986. Exports in that month were valued at £790 million and imports at £784 million. There was a trade surplus for the month of £6 million. For the first ten months of 1986 exports and imports were valued at £7,698 million and £7,153 million respectively. There was, therefore, a trade surplus of £545 million in the period compared with a surplus of £229 million for the same period last year.

The results for this period represent a continuation of the favourable balance of trade trend of recent years and confirm the Government's expectation of a further significant improvement for this year as a whole compared with 1985. There has been a substantial improvement in the balance of trade since 1981 when the trade deficit reached 16½ per cent of GNP. This was virtually eliminated by 1984 and in 1985 there was an actual surplus of 2% of GNP. The 1985 surplus was the first recorded in 40 years.

Improvement in the terms of trade was a major factor underlying the increased trade surplus to date in 1986. Import prices have declined sharply under the influence of lower oil prices and the appreciation of the Irish pound against the US dollar and sterling. Lower imported input costs together with keener competition on export markets have led to a decline in export prices, but of a lesser magnitude, resulting in an overall terms of trade improvement of about 3½ per cent.

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